Meiji’s latest movement on ice cream in China
On November 13, the Japanese food giant Meiji announced its latest 650 billion yuan investment plan - setting up a new factory in Shanghai for ice cream production. This factory will begin operation in 2023 which will grant Meiji 2.3 times higher production capacity of ice cream within China .
Meiji already has an ice cream plant in Guangzhou established in 2012, which has an annual production capacity of 107,100 tons with a total investment of 789 million yuan.
The reason behind this new factory is the sales of Meiji's ice cream consistently increased in China. In 2019, it was up by 25% Y-o-Y. According to its 2020 semi-annual financial report, Meiji's confectionery, milk and yoghurt sales declined in the Chinese market, whereas ice cream bucked the trend with unexpected growth.